Chapter 117: AUDITOR OF STATE

(A)
"Color of
office" means actually, purportedly, or allegedly done under any law,
ordinance, resolution, order, or other pretension to official right, power, or
authority.

(B)
"Public
accountant" means any person who is authorized by Chapter 4701. of the Revised
Code to use the designation of certified public accountant or who was
registered prior to January 1, 1971, as a public accountant.

(C)
"Public money" means any money received, collected by, or due a public official
under color of office, as well as any money collected by any individual on
behalf of a public office or as a purported representative or agent of the
public office.

"Public money" does not include either of the
following:

(1)
Money or revenue earned by or from a person's
ownership, operation, or use of an asset, whether tangible or intangible, that
either in whole or in part was sold, was leased, was licensed, was the granting
of a franchise, or was otherwise transferred or conveyed by a public office to
the person pursuant to an agreement, authorized by law, between the person and
the public office in which the public office received consideration from the
person for the asset that was sold, leased, licensed, franchised, or otherwise
transferred or conveyed;

(2)
With respect to the transfer described in Chapter
4313. of the Revised Code and the operation of the enterprise acquisition
project, revenues or receipts of or from the enterprise acquisition project in
the hands of the nonprofit corporation formed under section 187.01 of the
Revised Code or of a nonprofit entity the sole member of which is that
nonprofit corporation, but does include any taxes collected on the spirituous
liquor sales and then due the department of taxation and amounts then due to
the state general revenue fund pursuant to section 4301.12 of the Revised Code.
As used in this division, "enterprise acquisition project" has the meaning
defined in section 4313.01 of the Revised Code.

(D)
"Public office" means any state agency, public institution, political
subdivision, other organized body, office, agency, institution, or entity
established by the laws of this state for the exercise of any function of
government. "Public office" does not include the nonprofit corporation formed
under section 187.01 of the Revised Code.

(E)
"Public official" means any officer, employee, or duly authorized
representative or agent of a public office.

(F)
"State agency" means every organized body, office, agency, institution, or
other entity established by the laws of the state for the exercise of any
function of state government.

(1)
Any
examination, analysis, or inspection of the state's or a public office's
financial statements or reports;

(2)
Any
examination, analysis, or inspection of records, documents, books, or any other
evidence relating to either of the following:

(a)
The
collection, receipt, accounting, use, or expenditure of public money by a
public office or by a private institution, association, board, or
corporation;

(b)
The
determination by the auditor of state, as required by section 117.11 of the
Revised Code, of whether a public office has complied with all the laws, rules,
ordinances, or orders pertaining to the public office.

(3)
Any
other type of examination, analysis, or inspection of a public office, or of the specific funds or
accounts of a private institution, association, board, or corporation
into
which public money has been placed or
deposited, that is conducted according to generally accepted or
governmental auditing standards established by rule pursuant to section 117.19
of the Revised Code.

(H)
"Person" has the meaning defined in section 1.59 of
the Revised Code.

The auditor of state shall be elected quadrennially and shall
hold his office for a term of four years. The term of office of the auditor of
state shall commence on the second Monday of January next after his election.

Before entering upon
the discharge of the duties of
office, the auditor of state shall give a bond to the state in the sum of
twenty thousand dollars, with a surety authorized to do business in the
state, conditioned for the faithful discharge of the duties of
the
office of auditor of state. The bond and the oath
of office shall be
deposited with and kept by the secretary of state
and kept in the secretary of state's office.

The auditor of state shall appoint a deputy auditor of state,
whose appointment shall be in writing under the official seal of the auditor of
state and recorded in the office of the secretary of state.

Before entering upon the discharge of the duties of his office,
the deputy auditor of state shall give a bond to the auditor of state in the
sum of ten thousand dollars, with a surety approved by the auditor of state,
conditioned for the faithful discharge of the duties of his office.

The auditor of state shall keep the records, books, accounts,
documents, other papers, and vouchers pertaining to his office, properly
marked, numbered, and filed in his office, and at all times subject to the
inspection of the governor or a committee of the general assembly, or either
house thereof, appointed to examine them. Official copies of such records and
documents shall be certified and signed by the auditor of state and have the
seal of his office affixed.

By virtue of his office, the auditor of state shall be the
chief inspector and supervisor of public offices and may appoint not more than
three deputy inspectors and supervisors and a clerk. Not more than two deputy
inspectors and supervisors shall belong to the same political party.

The auditor of state shall appoint such state examiners as are
necessary, who shall be known as assistant auditors of state, and such
additional employees as he requires. No person shall be appointed an assistant
auditor of state unless he holds a baccalaureate degree from an accredited
college or university, or has successfully completed at least sixteen semester
hours or the equivalent in accounting or a related field from an accredited
college or university or an accredited trade, technical, or vocational school
beyond the high school level, or possesses at least three years' experience in
accounting or a related field.

Any employee called upon to testify in any legal proceedings in
regard to any official matter is entitled to compensation and expenses provided
in this section. Each employee shall be reimbursed for travel, including meals,
hotels, and other actual and necessary expenses when traveling on official
business, under order of the auditor of state, away from his headquarters or
the place of his principal assignment, in the manner and at the same rates as
are provided by the rules of the director of budget and management governing
travel.

The auditor of state may employ experts or assistants necessary
to disclose the facts concerning any matter and fix their compensation.

For the purpose of
discharging the duties of the auditor of state, the auditor of state may
appoint any investigators that are necessary. The auditor of state shall not
appoint a person as an investigator under this section unless the person holds
a valid certificate from the Ohio peace officer training council. While engaged
in the scope of the investigator's duties in enforcing this chapter, an
investigator appointed under this section has all of the powers and authority
of a peace officer under the laws of this state.

(A)
The
auditor of state shall audit all public offices as provided in this chapter.
The auditor of state also may audit the specific funds
or accounts of private institutions, associations, boards, and
corporations into which has been placed or deposited public
money from a public office and may require of them
annual reports in such form as the auditor of state prescribes.
The auditor of state may audit some or all of the other
funds or accounts of a private institution, association, board, or corporation
that has received public money from a public office only if one or more of the
following applies:

(1)
The audit is specifically required or authorized by
the Revised Code;

(2)
The private institution, association, board, or
corporation requests that the auditor of state audit some or all of its other
funds or accounts;

(3)
All of the revenue of the private institution,
association, board, or corporation is composed of public money;

(4)
The private institution, association, board, or
corporation failed to separately and independently account for the public money
in its possession, in violation of section 117.431 of the Revised
Code;

(5)
The auditor of state has a reasonable belief that the
private institution, association, board, or corporation illegally expended,
converted, misappropriated, or otherwise cannot account for the public money it
received from a public office and that it is necessary to audit its other funds
or accounts to make that determination.

(B)
If
the auditor of state performs or contracts for the performance of an audit,
including a special audit, of the public employees retirement system, school
employees retirement system, state teachers retirement system, state highway
patrol retirement system, or Ohio police and fire pension fund, the auditor of
state shall make a timely report of the results of the audit to the Ohio
retirement study council.

(C)
The
auditor of state may audit the accounts of any medicaid provider, as
defined in section 5164.01 of the Revised Code.

(D)
If a
public office has been audited by an agency of the United States government,
the auditor of state may, if satisfied that the federal audit has been
conducted according to principles and procedures not contrary to those of the
auditor of state, use and adopt the federal audit and report in lieu of an
audit by the auditor of state's own office.

(E)
Within thirty days after the creation or dissolution or the winding up of the
affairs of any public office, that public office shall notify the auditor of
state in writing that this action has occurred.

(F)
Nothing in this section precludes the auditor of state
from issuing to a private institution, association, board, or corporation a
subpoena and compulsory process for the attendance of witnesses or the
production of records under section 117.18 of the Revised Code if the subpoena
and compulsory process is in furtherance of an audit the auditor of state is
authorized by law to perform.

The auditor of state
shall provide, operate, and maintain a uniform and compatible computerized
financial management and accounting system known as the uniform accounting
network. The network shall be designed to provide public offices, other than
state agencies and the Ohio education computer network and public school
districts, with efficient and economical access to data processing and
management information facilities and expertise. In accordance with this
objective, activities of the network shall include, but not be limited to,
provision, maintenance, and operation of the following facilities and
services:

(A)
A
cooperative program of technical assistance for public offices, other than
state agencies and the Ohio education computer network and public school
districts, including, but not limited to, an adequate computer software system
and a data base;

The auditor of state
and any public office, other than a state agency and the Ohio education
computer network and public school districts, may enter into any necessary
agreements, without advertisement or bidding, for the provision of necessary
goods, materials, supplies, and services to such public offices by the auditor
of state through the network.

The auditor of state
may, by rule, provide for a system of user fees to be charged participating
public offices for goods, materials, supplies, and services received from the
network. All such fees shall be paid into the state treasury to the credit of
the uniform accounting network fund, which is hereby created. The fund shall be
used by the auditor of state to pay the costs of establishing and maintaining
the network. The fund shall be assessed a proportionate share of the auditor of
state's administrative costs in accordance with procedures prescribed by the
auditor of state .

(A)
The auditor
of state shall establish and maintain a system for the reporting of fraud,
including misuse and misappropriation of public money, by any public office or
public official. The system shall allow Ohio residents and the employees of any
public office to make anonymous complaints through a toll-free telephone
number, the auditor of state's web site, or the United States mail to the
auditor of state's office. The auditor of state shall review all complaints in
a timely manner.

The
auditor of state shall keep a log of all complaints filed under this section,
which is a public record under section
149.43 of the Revised Code. The log
shall include the date the complaint was received, a general description of the
nature of the complaint, the name of the public office or agency with regard to
which the complaint is directed, and a general description of the status of the
review by the auditor of state. If section
149.43 of the Revised Code or
another statute provides for an applicable exemption from the definition of
public record for the information recorded on the log, that information may be
redacted.

(1)
A public
office shall provide information about the Ohio fraud-reporting system and the
means of reporting fraud to each new employee upon employment with the public
office. Each new employee shall confirm receipt of this information within
thirty days after beginning employment. The auditor of state shall provide a
model form on the auditor of state's web site to be printed and used by new
public employees to sign and verify their receipt of information as required by
this section. The auditor of state shall confirm, when conducting an audit
under section
117.11 of the Revised Code, that
new employees have been provided information as required by this
division.

(2)
On the
effective date of this section, each public office shall make all its employees
aware of the fraud-reporting system required by this section.

(3)
Divisions
(B)(1) and (2) of this section are satisfied if a public office provides
information about the fraud-reporting system and the means of reporting fraud
in the employee handbook or manual for the public office. An employee shall
sign and verify the employee's receipt of such a handbook or
manual.

(A)
Except as otherwise provided in this division and in sections 117.112
,
117.113, and 117.114 of the Revised Code, the
auditor of state shall audit each public office at least once every two fiscal
years. The auditor of state shall audit a public office each fiscal year if
that public office is required to be audited on an annual basis pursuant to
"The Single Audit Act of 1984," 98 Stat. 2327, 31 U.S.C.A. 7501 et seq., as
amended. In the annual or biennial audit, inquiry shall be made into the
methods, accuracy, and legality of the accounts, financial reports, records,
files, and reports of the office, whether the laws, rules, ordinances, and
orders pertaining to the office have been observed, and whether the
requirements and rules of the auditor of state have been complied with. Except
as otherwise provided in this division or where auditing standards or
procedures dictate otherwise, each audit shall cover at least one fiscal year.
If a public office is audited only once every two fiscal years, the audit shall
cover both fiscal years.

(B)
In addition to
the annual or biennial audit provided for in division (A) of this section
or in section 117.114 of the Revised Code, the
auditor of state may conduct an audit of a public office at any time when so
requested by the public office or upon the auditor of state's own initiative if
the auditor of state has reasonable cause to believe that an additional audit
is in the public interest.

(1)
The
auditor of state shall identify any public office in which the auditor of state
will be unable to conduct an audit at least once every two fiscal years as
required by division (A) of this section and shall provide immediate written
notice to the clerk of the legislative authority or governing board of the
public office so identified. Within six months of the receipt of such notice,
the legislative authority or governing board may engage an independent
certified public accountant to conduct an audit pursuant to section 117.12 of
the Revised Code.

(2)
When the chief
fiscal officer of a public office notifies the auditor of state that an audit
is required at a time prior to the next regularly scheduled audit by the
auditor of state, the auditor of state shall either cause an earlier audit to
be made by the auditor of state or authorize the legislative authority or
governing board of the public office to engage an independent certified public
accountant to conduct the required audit. The scope of the audit shall be as
authorized by the auditor of state.

(3)
The
auditor of state shall approve the scope of an audit under division (C)(1) or
(2) of this section as set forth in the contract for the proposed audit before
the contract is executed on behalf of the public office that is to be audited.
The independent accountant conducting an audit under division (C)(1) or (2) of
this section shall be paid by the public office.

(4)
The
contract for attest services with an independent accountant employed pursuant
to this section or section 115.56 of the Revised Code may include binding
arbitration provisions, provisions of Chapter 2711. of the Revised Code, or any
other alternative dispute resolution procedures to be followed in the event a
dispute remains between the state or public office and the independent
accountant concerning the terms of or services under the contract, or a breach
of the contract, after the administrative provisions of the contract have been
exhausted.

(D)
If a uniform
accounting network is established under section 117.101 of the Revised Code,
the auditor of state or a certified public accountant employed pursuant to this
section or section 115.56 or 117.112 of the Revised Code shall, to the extent
practicable, utilize services offered by the network in order to conduct
efficient and economical audits of public offices.

(E)
The
auditor of state , in accordance
with division (A)(3) of section 9.65 of the Revised Code and this section,
may audit an annuity program for volunteer fire
fighters established by a political subdivision under section 9.65 of the
Revised Code. As used in this section, "volunteer fire fighters" and "political
subdivision" have the same meanings as in division (C) of section 9.65 of the
Revised Code.

(A)
If a
county office uses electronic records and electronic signatures under Chapter
1306. of the Revised Code, the auditor of state, in conducting an audit of that
office under division (A) or (B) of section
117.11 of the Revised Code, shall
inquire into the method, accuracy, and effectiveness of any security procedure
adopted by that office under section
304.02 of the Revised Code.

(B)
As used in this section,
"county office," "electronic," "electronic record," and "electronic signature"
have the same meanings as in section
304.01 of the Revised Code.

The auditor of state shall audit the buckeye tobacco settlement
financing authority each fiscal year in accordance with this chapter. The
auditor may engage an independent certified public accountant to conduct the
audit.

(1)
"Qualifying subdivision" means an agricultural
society, county board of health, cemetery, conservancy district, family and
children first council, fire district, ambulance district, fire and ambulance
district, library, park or recreation district, regional planning commission,
solid waste district, township, village, water district, sewer district, or
water and sewer district, or a political subdivision determined by the
auditor of state on a case-by-case basis to be a qualifying
subdivision.

(2)
"Eligible subdivision" means a qualifying subdivision
that meets the criteria specified in this section and the criteria established
by rule of the auditor of state.

(B)
The auditor of state shall establish by rule an
agreed-upon procedure by which eligible subdivisions may be audited. The rules
shall set forth the standards, procedures, guidelines, and reporting
requirements for an agreed-upon procedure audit. At a minimum, the rules shall
require that, to be eligible for an agreed-upon procedure audit, a political
subdivision must be a qualifying subdivision that meets all of the following
criteria:

(1)
The qualifying subdivision's annual budgeted
expenditures do not exceed five million dollars for any fiscal year for which
the agreed-upon procedure audit will be performed;

(c)
Required to be audited on an annual basis under "The
Single Audit Act of 1984," 98 Stat. 2327, 31 U.S.C. 7501 et seq., as amended,
or under other laws, grants, bylaws, or debt covenants.

(7)
The qualifying subdivision does not have outstanding
audit fees in arrears; and

(8)
Any other criteria the auditor of state determines the
qualifying subdivision must meet to be eligible for an agreed-upon procedure
audit.

(C)
An eligible subdivision may, but is not required to,
engage in an agreed-upon procedure audit. If the eligible subdivision does not
engage in an agreed-upon procedure audit under this section and the rules
adopted thereunder, the eligible subdivision instead shall undergo an audit
under division (A) of section 117.11 or division (A) of section 117.12 of the
Revised Code.

(D)
An agreed-upon procedure audit shall be performed by
the auditor of state or by an independent certified public accountant under the
attestation standards established by the American institute of certified public
accountants. Eligible subdivisions may have an agreed-upon procedure audit in
two consecutive audit periods followed by one audit performed under division
(A) of section 117.11 or division (A) of section 117.12 of the Revised
Code.

(E)
The auditor of state, on a case-by-case basis, may
determine that a qualifying subdivision that fails to meet any one of the
criteria established by rule under division (B) of this section is otherwise
eligible for an agreed-upon procedure audit and may, in writing, grant a waiver
of a particular criterion.

(F)
An eligible subdivision that engages in an agreed-upon
procedure audit shall continue to file an annual financial report as required
under section 117.38 of the Revised Code.

(A)
Any
certified public accountant engaged to perform an
audit pursuant to division (C) of section 117.11 of the Revised Code shall
conduct the audit pursuant to the standards, procedures, and guidelines of the
auditor of state for such audits. The auditor of state shall establish these
standards, procedures, and guidelines by rule. The audit shall cover the period
beginning with the termination date of the most recent audit conducted under
this section or under section 117.11
or 117.114 of the Revised Code, and ending on the date specified by the auditor of
state. The accountant shall inquire into the methods, accuracy, and legality of
the accounts, records, files, and reports of the public office and shall note
whether, in the accountant's opinion, the laws, rules, ordinances, and orders
pertaining to the public office have been complied with.

(B)
Any certified public accountant engaged to perform an
agreed-upon procedure audit pursuant to section 117.114 of the Revised Code
shall conduct the audit pursuant to the standards, procedures, guidelines, and
reporting requirements adopted by rule of the auditor of state pursuant to that
section.

(C)
The certified public accountant shall have no
authority to make formal findings of illegality, malfeasance, or gross neglect
under this section or section 117.23 of the Revised
Code.

(A)
The costs of audits of state agencies shall be recovered by the auditor of
state in the following manner:

(1)
The costs of all audits of state agencies shall be paid to the auditor of state
on statements rendered by the auditor of state. Money so received by the
auditor of state shall be paid into the state treasury to the credit of the
public audit expense fund--intrastate, which is hereby created, and shall be
used to pay costs related to such audits. The costs of audits of a state agency
shall be charged to the state agency being audited. The costs of any assistant
auditor, employee, or expert employed pursuant to section
117.09 of the Revised Code called
upon to testify in any legal proceedings in regard to any audit, or called upon
to review or discuss any matter related to any audit, may be charged to the
state agency to which the audit relates.

(2)
The auditor of state shall establish by rule rates to be charged to state
agencies for recovering the costs of audits of state agencies.

(B)
As used
in this division, "government auditing standards" means the government auditing
standards published by the comptroller general of the United States general
accounting office.

(1)
Except
as provided in divisions (B)(2) and (3) of this section, any costs of an audit
of a private institution, association, board, or corporation receiving public
money for its use shall be charged to the public office providing the public
money in the same manner as costs of an audit of the public office.

(2)
If an audit of a private child placing agency or private noncustodial agency
receiving public money from a public children services agency for providing
child welfare or child protection services sets forth that money has been
illegally expended, converted, misappropriated, or is unaccounted for, the
costs of the audit shall be charged to the agency being audited in the same
manner as costs of an audit of a public office, unless the findings are
inconsequential, as defined by government auditing standards.

(3)
If such an audit does not set forth that money has been illegally expended,
converted, misappropriated, or is unaccounted for or sets forth findings that
are inconsequential, as defined by government auditing standards, the costs of
the audit shall be charged as follows:

(b)
One-third of the costs to the public children services agency that provided the
public money to the agency being audited;

(c)
One-third of the costs to the department of job and family services.

(C)
The
costs of audits of local public offices shall be recovered by the auditor of
state in the following manner:

(1)
The total amount of compensation paid assistant auditors of state, their
expenses, the cost of employees assigned to assist the assistant auditors of
state, the cost of experts employed pursuant to section
117.09 of the Revised Code, and the
cost of typing, reviewing, and copying reports shall be borne by the public
office to which such assistant auditors of state are so assigned. Assistant auditors of state shall be compensated by the
taxing district or other public office audited for activities undertaken
pursuant to division (B) of section
117.18 and section
117.24 of the Revised Code. The
costs of any assistant auditor, employee, or expert employed pursuant to
section 117.09 of the Revised Code called
upon to testify in any legal proceedings in regard to any audit, or called upon
to review or discuss any matter related to any audit, may be charged to the
public office to which the audit relates.

(2)
The auditor of state shall certify the amount of such compensation, expenses,
cost of experts, reviewing, copying, and typing to the fiscal officer of the
local public office audited. The fiscal officer of the local public office
shall forthwith draw a warrant upon the general fund or other appropriate funds
of the local public office to the order of the auditor of state; provided, that
the auditor of state is authorized to negotiate with any local public office
and, upon agreement between the auditor of state and the local public office,
may adopt a schedule for payment of the amount due under this section. Money so
received by the auditor of state shall be paid into the state treasury to the
credit of the public audit expense fund--local government, which is hereby
created, and shall be used to pay the compensation, expense, cost of experts
and employees, reviewing, copying, and typing of reports.

(3)
At the conclusion of each audit, or analysis and report made pursuant to
section 117.24 of the Revised Code, the
auditor of state shall furnish the fiscal officer of the local public office
audited a statement showing the total cost of the audit, or of the audit and
the analysis and report, and the percentage of the total cost chargeable to
each fund audited. The fiscal officer may distribute such total cost to each
fund audited in accordance with its percentage of the total cost.

(4)
The auditor of state shall provide each local public office a statement or
certification of the amount due from the public office for services performed
by the auditor of state under this or any other section of the Revised Code, as
well as the date upon which payment is due to the auditor of state. Any local
public office that does not pay the amount due to the auditor of state by that
date may be assessed by the auditor of state for interest from the date upon
which the payment is due at the rate per annum prescribed by section
5703.47 of the Revised Code. All
interest charges assessed by the auditor of state may be collected in the same
manner as audit costs pursuant to division (D) of this section.

(5)
The auditor
of state shall establish by rule rates to be charged to local public offices
for recovering the costs of audits of local public offices.

(D)
If the
auditor of state fails to receive payment for any amount due, including, but
not limited to, fines, fees, and costs, from a public office for services
performed under this or any other section of the Revised Code, the auditor of
state may seek payment through the office of budget and management. (Amounts
due include any amount due to an independent public accountant with whom the
auditor has contracted to perform services, all costs and fees associated with
participation in the uniform accounting network, and all costs associated with
the auditor's provision of local government services.) Upon certification by
the auditor of state to the director of budget and management of any such
amount due, the director shall withhold from the public office any amount
available, up to and including the amount certified as due, from any funds
under the director's control that belong to or are lawfully payable or due to
the public office. The director shall promptly pay the amount withheld to the
auditor of state. If the director determines that no funds due and payable to
the public office are available or that insufficient amounts of such funds are
available to cover the amount due, the director shall withhold and pay to the
auditor of state the amounts available and, in the case of a local public
office, certify the remaining amount to the county auditor of the county in
which the local public office is located. The county auditor shall withhold
from the local public office any amount available, up to and including the
amount certified as due, from any funds under the county auditor's control and
belonging to or lawfully payable or due to the local public office. The county
auditor shall promptly pay any such amount withheld to the auditor of
state.

An annual audit of the office of the auditor of state shall be
made by an independent certified public accountant appointed by a committee
consisting of the governor and the chairpersons of the finance committees of
the senate and the house of representatives. The committee shall make the
appointment by the thirty-first day of March immediately preceding the last day
of the fiscal year to be audited and shall prescribe the contract terms of the
audit.

On or before the fifteenth day of October, the accountant shall
submit a report of the audit completed under this section for the immediately
preceding fiscal year to each member of the committee. One copy of the audit
report shall be filed with the state library for public inspection. The audit
report is not a public record under section
149.43 of the Revised Code until it
is filed with the state library.

The records of the auditor of state shall be made available to
the accountant.

Once each year, or more often in his discretion, the auditor of
state shall without previous notice audit the accounts and transactions of the
office of the treasurer of state, ascertain the condition of the state treasury
and the custodial funds of the treasurer of state, and make an inventory of the
assets of the state treasury and the custodial funds of the treasurer of state.
He shall sign his report and submit one copy each to the treasurer of state,
governor, attorney general, and secretary of state. An audit report completed
pursuant to this section is not a public record under section
149.43 of the Revised Code until it
is submitted to the officers enumerated in this section.

(1)
Develop a force account project assessment form that each public office that
undertakes force account projects shall use to estimate or report the cost of a
force account project. The form shall include costs for employee salaries and
benefits, any other labor costs, materials, freight, fuel, hauling, overhead
expense, workers' compensation premiums, and all other items of cost and
expense, including a reasonable allowance for the use of all tools and
equipment used on or in connection with such work and for the depreciation on
the tools and equipment.

(2)
Make the form
available to public offices by any cost-effective, convenient method accessible
to the auditor of state and the public offices;

(3)
When
conducting an audit under this chapter of a public office that undertakes force
account projects, examine the forms and records of a sampling of the force
account projects the public office completed since an audit was last conducted,
to determine compliance with its force account limits.

(B)
If
the auditor of state receives a complaint from any person that a public office
has violated the force account limits established for that office, the auditor
of state may conduct an audit in addition to the audit provided in section
117.11 or 117.114 of the Revised Code if the
auditor of state has reasonable cause to believe that an additional audit is in
the public interest.

(1)
If
the auditor of state finds that a county, township, or municipal corporation
violated the force account limits established for that political subdivision,
the auditor of state, in addition to any other action authorized by this
chapter, shall notify the political subdivision that, for a period of one year
from the date of the notification, the force account limits for the subdivision
are reduced as follows:

(a)
For a county,
the limits shall be ten thousand dollars per mile for construction or
reconstruction of a road and forty thousand dollars for construction,
reconstruction, maintenance, or repair of a bridge or culvert;

(b)
For a
township, the limit shall be fifteen thousand dollars for maintenance and
repair of a road or five thousand per mile for construction or reconstruction
of a township road;

(c)
For a
municipal corporation, the limit shall be ten thousand dollars for the
construction, reconstruction, widening, resurfacing, or repair of a street or
other public way.

(2)
If
the auditor of state finds that a county, township, or municipal corporation
violated the force account limits established for that political subdivision a
second or subsequent time, the auditor of state, in addition to any other
action authorized by this chapter, shall notify the political subdivision that,
for a period of two years from the date of the notification, the force account
limits for the subdivision are reduced in accordance with division (C)(1)(a),
(b), or (c) of this section.

(3)
If
the auditor of state finds that a county, township, or municipal corporation
violated the force account limits established for that political subdivision a
third or subsequent time, the auditor of state shall certify to the tax
commissioner an amount the auditor of state determines to be twenty per cent of
the total cost of the force account project that is the basis of the violation.
Upon receipt of this certification, the tax commissioner shall withhold the
certified amount from any funds under the tax commissioner's control that are
due or payable to that political subdivision. The tax commissioner shall
promptly deposit this withheld amount to the credit of the local transportation
improvement program fund created by section 164.14 of the Revised Code.

If the tax commissioner
determines that no funds are due and payable to the violating political
subdivision or that insufficient amounts of such funds are available to cover
the entire certified amount, the tax commissioner shall withhold and deposit to
the credit of the local transportation improvement program fund any amount
available and certify the remaining amount to be withheld to the county auditor
of the county in which the political subdivision is located. The county auditor
shall withhold from that political subdivision any amount, up to that certified
by the tax commissioner, that is available from any funds under the county
auditor's control, that is due or payable to that political subdivision, and
that can be lawfully withheld. The county auditor shall promptly pay that
withheld amount to the tax commissioner for deposit into the local
transportation improvement program fund.

The payments required under
division (C)(3) of this section are in addition to the force account limit
reductions described in division (C)(2) of this section and also are in
addition to any other action authorized by this chapter.

(D)
If the auditor
of state finds that a county, township, or municipal corporation violated its
force account limits when participating in a joint force account project, the
auditor of state shall impose the reduction in force account limits under
division (C) of this section on all entities participating in the joint
project.

(E)
As used in
this section, "force account limits" means any of the following, as applicable:

(1)
For a
county, the amounts established in section 5543.19 of the Revised
Code;

(2)
For a
township, the amounts established in section 5575.01 of the Revised
Code;

(3)
For a
municipal corporation, the amount established in section 723.52 of the Revised
Code;

(4)
For the
department of transportation, the amount established in section 5517.02 of the
Revised Code.

If the department of transportation, a county, a township, or a
municipal corporation proposes a joint force account project with one or more
other entities, the controlling force account limit shall be the higher limit
that applies between the participating entities. The participating entities
shall not aggregate their respective force account limits, and the share of
each participating entity shall not exceed its respective force account limit.
One of the participating entities shall complete the force account project
assessment form developed by the auditor of state under section
117.16 of the Revised Code prior to
proceeding by force account.

The department of transportation and any county, township, or
municipal corporation shall not proceed with a joint force account project if
any one of the participating entities is subject to reduced force account
limits under division (C) or (D) of section
117.16 of the Revised Code.

As used in this section, "force account limits" has the same
meaning as in section
117.16 of the Revised Code.

Before the head of a state agency leaves office, he shall
prepare, in the form prescribed by the auditor of state, a letter of
representation for his successor in office. The letter shall contain an
inventory of all properties, supplies, furniture, credits, and moneys, and any
other thing belonging to the state, which it is the duty of such official to
turn over to his successor in office or pay into the state treasury. One copy
of the letter shall be delivered to the official, one copy to his successor in
office, one copy to the governor, one copy to the auditor of state, and one
copy to the attorney general.

(A)
The auditor of state and any employee
designated by the auditor of state may, in the performance of any audit, issue
and serve subpoenas and compulsory process or direct service thereof by a
sheriff or constable, compel the attendance of witnesses and the production of
records, administer oaths, and apply to a court of competent jurisdiction to
punish for disobedience of subpoena, refusal to be sworn, refusal to answer as
a witness, or refusal to produce records. Sheriffs and constables shall receive
the same fees as for like services in similar cases. Witnesses shall receive
the same fees and mileage as witnesses are provided under section
119.094 of the Revised Code.

(B)
The auditor of state and any
employee designated by the auditor of state may exercise any authority granted
by this section on behalf of any public accountant conducting an audit pursuant
to this chapter when so requested.

The auditor of state shall establish and define by rule
generally accepted or governmental auditing standards, including procedures for
post-audit conferences with officials of the public office audited.

When the auditor of state audits a public children services
agency, private child placing agency, or private noncustodial agency, all of
the following shall apply:

(A)
On the
request of the agency being audited, the auditing team shall consult with a
representative of a national nonprofit organization with expertise in child
welfare issues and the cost of the consultation shall be included in the cost
of the audit;

(B)
The audit shall
focus on fiscal accountability rather than clinical decision making;

(C)
The auditor of state shall comply with
generally accepted government auditing standards when conducting the audit.

(A)
In
adopting rules pursuant to Chapter 117. of the Revised Code, the auditor of
state or the auditor of state's designee shall do both of the following:

(1)
Before adopting any such rule, except a rule of an emergency nature, do each of
the following:

(a)
At least
thirty-five days before any public hearing on the proposed rule-making action,
mail or send by electronic mail notice of the
hearing to each public office and to each statewide organization that the
auditor of state or designee determines will be affected or
that represents persons who will be affected by
the proposed rule-making action;

(b)
Mail
or send by electronic mail a copy of the proposed
rule to any person or organization that requests a copy within five days after
receipt of the request;

(c)
Consult with
appropriate state and local government agencies, or with persons representative
of their interests, including statewide organizations of local government
officials, and consult with accounting professionals and other interested
persons;

(d)
Conduct, on
the date and at the time and place designated in the notice, a public hearing
at which any person affected by the proposed rule, including statewide
organizations of local government officials, may appear and be heard in person,
by attorney, or both, and may present the person's or organization's position
or contentions orally or in writing.

(B)
The
auditor of state shall diligently discharge the duties imposed by divisions
(A)(1)(a), (b), and (c) of this section, but failure to mail
or send by electronic mail any notice or copy of
a proposed rule, or to consult with any person or organization, shall not
invalidate any rule.

(C)
Notwithstanding any contrary provision of the Revised Code, the auditor of
state may prepare and disseminate, to public offices and other interested
persons and organizations, advisory bulletins, directives, and instructions
relating to accounting and financial reporting systems, budgeting procedures,
fiscal controls, and the constructions by the auditor of state of
constitutional and statutory provisions, court decisions, and opinions of the
attorney general. The bulletins, directives, and instructions shall be of an
advisory nature only.

(D)
As used in
this section, "rule" includes the adoption, amendment, or rescission of a
rule.

The auditor of state shall have access to all work papers,
documents, and materials prepared by a public accountant in the course of his
audit of a public office. The work papers, documents, and materials shall be
retained by the public accountant for a period of three years from the release
date of the audit report of the auditor of state, except as otherwise specified
by the auditor of state.

The public accountant conducting an audit under this chapter
may request the auditor of state, the deputy auditor of state, a deputy
inspector and supervisor of public offices, or an assistant auditor of state to
exercise any authority granted under section
117.18 of the Revised Code for the
purpose of assisting in the conduct of the audit. Assistant auditors of state
and experts or other assistants shall be compensated as provided by sections
117.09 and
117.12 of the Revised Code.

The auditor of state shall analyze the report of the public
accountant who has audited a public office to determine whether any public
money has been illegally expended, any public money collected has not been
accounted for, any public money due has not been collected, or any public
property has been converted or misappropriated. In addition, the auditor of
state or his appointee shall determine whether there has been any malfeasance
or gross neglect of duty on the part of any officer or employee of the public
office.

The auditor of state shall incorporate the report of the public
accountant and the results of the analysis performed pursuant to section
117.24 of the Revised Code in a
report which shall constitute an audit report for purposes of this chapter.

When applicable, the auditor of state shall make a notation on
the audit report prepared under section
117.25 of the Revised Code for any
county treasurer's office, that the county treasurer invested at least ten per
cent of the county's money in eligible institutions as described in Chapter
135. of the Revised Code, located within the county during the previous fiscal
year.

Certified copies of completed audit reports shall be filed in
the office of the clerk of the legislative authority, clerk of the governing
body, executive officer of the governing body, and chief fiscal officer of the
audited public office. Except as otherwise provided in sections
117.14 and
117.15 of the Revised Code, an
audit report is not a public record under section
149.43 of the Revised Code until
copies of the report are filed with the officers enumerated in this section.

A certified copy of the audit report referred to in section
117.26 of the Revised Code shall be
filed with the officer required by state law, municipal or county charter, or
municipal ordinance to act as legal counsel to the officers of the public
office. If no officer is required by state law, municipal or county charter, or
municipal ordinance to act as legal counsel, a copy shall be filed with the
prosecuting attorney of the county within which the fiscal office of the public
office is located.

Where an audit report sets forth that any public money has been
illegally expended, or that any public money collected has not been accounted
for, or that any public money due has not been collected, or that any public
property has been converted or misappropriated, the officer receiving the
certified copy of the report pursuant to section
117.27 of the Revised Code may,
within one hundred twenty days after receiving the report, institute civil
action in the proper court in the name of the public office to which the public
money is due or the public property belongs for the recovery of the money or
property and prosecute the action to final determination.

The auditor of state shall notify the attorney general in
writing of every audit report which sets forth that any public money has been
illegally expended, or that any public money collected has not been accounted
for, or that any public money due has not been collected, or that any public
property has been converted or misappropriated and of the date that the report
was filed.

Within one hundred twenty days after receiving the certified
copy of the report, the officer receiving the report shall notify the attorney
general in writing of whether any legal action has been taken. If no legal
action has been taken, the officer shall, within the same period, notify the
attorney general in writing of the reason why legal action has not been taken.
The attorney general or his assistant may appear in any such action on behalf
of the public office and may, either in conjunction with or independent of the
officer receiving the report, prosecute an action to final determination. The
attorney general may bring the action in any case where the officer fails to do
so within one hundred twenty days after the audit report has been filed.

Where an audit report sets forth any malfeasance or gross
neglect of duty on the part of any public official for which a criminal penalty
is provided, a certified copy of the report shall be filed with the prosecuting
attorney of the county in which the offense is committed, and the prosecuting
attorney shall, within one hundred twenty days, institute criminal proceedings
against the public official.

Where an audit report made of any office of an officer
receiving a report pursuant to section
117.27 of the Revised Code sets
forth that public money has been illegally expended, or that any public money
collected has not been accounted for, or that any public money due has not been
collected, or that any public property has been converted or misappropriated, a
certified copy of the report shall be filed with the attorney general. Within
one hundred twenty days after receiving the copy, the attorney general may
institute appropriate legal action in the proper court on behalf of the public
office.

Where an audit report made of the office of the attorney
general sets forth that public money has been illegally expended, or that any
public money collected has not been accounted for, or that public money due,
except claims certified for collection, has not been collected, or that any
public property has been converted or misappropriated, a certified copy of the
report shall be filed with the governor, who shall promptly retain legal
counsel to institute civil action in the proper court in the name of the state
for the recovery of the money or property and prosecute the action to final
determination.

In addition to the liability of any officer or employee for
which he may be sued under this chapter, the surety on any official bond given
by an officer or employee is liable on his bond up to the amount named therein.
The surety may be sued in the same action in which the principal is sued, and
this chapter applies with equal force to the surety as to the principal.

No claim for money or other property found to be due to any
public treasury or custodian of public money in any report of the auditor of
state, other than a report as described in section
117.31 of the Revised Code, shall
be abated or compromised, either before or after the filing of civil action, by
any legislative or executive action or by order of any court unless the
attorney general gives his written approval.

No cause of action on any matter set forth in any report of the
auditor of state made under this chapter shall accrue until the report is filed
with the officer or legal counsel whose duty it is to institute civil actions
for enforcement. No statutes of limitations otherwise applicable to the cause
of action shall begin to run until the date of filing.

No judgment or final order shall be entered in a civil action
commenced under this chapter, other than a civil action instituted pursuant to
section 117.31 of the Revised Code, until
the entry is submitted to the attorney general. The attorney general is hereby
constituted an attorney of record in each action.

The civil actions provided for in this chapter may be
entertained, heard, and determined by any court having jurisdiction of the
amount involved or having jurisdiction to afford the remedy prayed for,
notwithstanding the absence of any other law authorizing such civil actions to
be filed by the governor, the attorney general, or the officer receiving a
report pursuant to section
117.27 of the Revised Code. In any
action it is sufficient for the plaintiff to allege in the petition so much of
the factual information contained in the report of the auditor of state as
relates to the claim or action against the defendant therein and that the
amount claimed against the defendant is unpaid. The plaintiff is not required
to state separately and number in his petition any separate causes of action,
or the factual findings of the report, upon whatever claims or circumstances
based, since they are deemed to constitute a single cause of action; nor is he
required to set forth any other or further factual matter relating to his claim
or action. A certified copy of any portion of the report containing factual
information is prima-facie evidence in determining the truth of the allegations
of the petition.

Each public office, other than a state agency, shall file a
financial report for each fiscal year. The auditor of state may prescribe forms
by rule or may issue guidelines, or both, for such reports. If the auditor of
state has not prescribed a rule regarding the form for the report, the public
office shall submit its report on the form utilized by the public office.

The report shall be certified by the proper officer or board
and filed with the auditor of state within sixty days after the close of the
fiscal year, except that public offices reporting pursuant to generally
accepted accounting principles shall file their reports within one hundred
fifty days after the close of the fiscal year. The auditor of state may extend
the deadline for filing a financial report and establish terms and conditions
for any such extension. At the time the report is filed with the auditor of
state, the chief fiscal officer, except as otherwise provided in section
319.11 of the Revised Code, shall
publish notice in a newspaper published in the political subdivision or taxing
district, and if there is no such newspaper, then in a newspaper of general
circulation in the political subdivision or taxing district. The notice shall
state that the financial report has been completed by the public office and is
available for public inspection at the office of the chief fiscal officer.

The report shall contain the following:

(A)
Amount of collections and receipts, and
accounts due from each source;

(C)
Income of each public service industry
owned or operated by a municipal corporation, and the cost of such ownership or
operation;

(D)
Amount of public
debt of each taxing district, the purpose for which each item of such debt was
created, and the provision made for the payment thereof. The substance of the
report shall be published at the expense of the state in an annual volume of
statistics, which shall be submitted to the governor. The auditor of state
shall transmit the report to the general assembly at its next session.

Any public office, other than a state agency, that does not
file its financial report at the time required by this section shall pay to the
auditor of state twenty-five dollars for each day the report remains unfiled
after the filing date; provided, that the penalty payments shall not exceed the
sum of seven hundred fifty dollars. The auditor of state may waive all or any
part of the penalty assessed under this section upon the filing of the past due
financial report. All sums collected from such penalties shall be placed in the
public audit expense fund--local government. If the auditor of state fails to
receive payment for penalties not paid within one year from the required filing
date , the auditor may recover the penalties through the process in division
(D) of section
117.13 of the Revised Code.

Every county agency, board, or commission shall provide to the
county auditor, not later than the first day of March each year unless a later
date is authorized by the county auditor, all information determined by the
county auditor to be necessary for the preparation of the report required by
this section.

The auditor of state may require financial reports from any
public office showing the condition of all appropriation accounts, the money
actually in the treasury to the credit of each fund or account, and any other
information he considers proper.

A public official of a public office, other than a state
agency, who knowingly refuses to keep the accounts of his office as prescribed
by this chapter or rules adopted by the auditor of state pursuant thereto, or
to make the reports required by the auditor of state, may be removed from
office on hearing before the court of common pleas in the county in which the
office is located. Action for removal may be brought by the attorney general at
the request of the auditor of state.

If the auditor of state or a public accountant auditing a
public office determines that the office cannot be audited because its
accounts, records, files, or reports have been improperly maintained, the
person making the determination may declare the public office to be
unauditable. A public office declared to be unauditable shall follow the
procedures established by the auditor of state to bring its accounts, records,
files, or reports into an auditable condition. If the public office fails to
make reasonable efforts and continuing progress to bring its accounts, records,
files, or reports into an auditable condition within ninety days after being
declared unauditable, the auditor of state shall request legal action pursuant
to section 117.42 of the Revised Code to
compel the public office to bring its accounts, records, files, or reports into
an auditable condition.

Upon request of the auditor of state, the attorney general may
file and prosecute to judgment or decree appropriate actions to prevent the
unlawful expenditures of public funds, cancel contracts not made in compliance
with law, enforce liabilities arising from false certifications or failure to
furnish financial reports, secure compliance with this chapter, secure
compliance with fiscal, accounting, or budgeting requirements, opinions, or
adjustments made in an audit report, secure compliance with the laws,
ordinances, rules, and orders pertaining to any public office, and enforce
generally the laws relating to the expenditure of public funds. All sums
collected as a result of any action taken under this chapter shall be placed in
the treasury of the appropriate public office.

(A)
The auditor of state may prescribe by
rule, requirements for accounting and financial reporting for public offices
other than state agencies.

Rules adopted pursuant to this section may refer to
publications of government agencies or private organizations recommending
systems or standards to be followed in governmental accounting and financial
reporting.

(B)
Except as
otherwise provided in section
126.22 of the Revised Code or as
otherwise provided by law, no state agency shall enter into a contract for
auditing or accounting services without the approval of the auditor of state
except with funds derived from nonpublic sources. The provisions of this
section shall not apply to the legislative branch of government.

Public money in the possession of any private institution, association, board,
or corporation shall be accounted for separately and independently from its
other funds and accounts. The auditor of state may adopt rules establishing the
manner in which the public money shall be separately and independently
accounted for.

To enhance local officials' background and working knowledge of
government accounting, budgeting and financing, financial report preparation,
and the rules adopted by the auditor of state, the auditor of state shall hold
training programs for persons elected for the first time as township fiscal
officers, city auditors, and village clerks, between the first day of December
and the first day of April immediately following a general election for any of
these offices. Similar training may also be provided to any township fiscal
officer, city auditor, or village clerk who is appointed to fill a vacancy or
who is elected in a special election.

The auditor of state also shall develop and provide an annual
training program of continuing education for village clerks.

The auditor of state shall determine the manner, content, and
length of the training programs after consultation with appropriate statewide
organizations of local governmental officials. The auditor of state shall
charge the political subdivisions that the trainees represent a registration
fee that will meet actual and necessary expenses of the training, including
instructor fees, site acquisition costs, and the cost of course materials. The
necessary personal expenses incurred by the officials as a result of attending
the training program shall be borne by the political subdivisions they
represent.

The auditor of state shall allow any other interested person to
attend any of the training programs that the auditor of state holds pursuant to
this section; provided, that before attending any such training program, the
interested person shall pay to the auditor of state the full registration fee
that the auditor of state has set for the training program.

The auditor of state may provide any other appropriate training
or educational programs that may be developed and offered by the auditor of
state or in collaboration with one or more other state agencies, political
subdivisions, or other public or private entities.

There is hereby established in the state treasury the auditor
of state training program fund, to be used by the auditor of state for the
actual and necessary expenses of any training programs held pursuant to this
section, section
117.441, or section
321.46 of the Revised Code. All
registration fees collected under this section shall be paid into the fund.

The auditor of state shall conduct a fiduciary training program
for members and employees of state boards and commissions. The program shall be
offered at least annually. The auditor of state shall determine the manner and
content of the program and may charge a registration fee to defray the actual
and necessary expenses of the program.

Members and employees of state boards and commissions may
attend the fiduciary training program offered under this section. If a
registration fee is charged for the program, the auditor of state shall deposit
it into the auditor of state training program fund established under section
117.44 of the Revised Code.

Each
biennium the auditor of state shall conduct a performance audit of a minimum of
four state agencies. At least two of the audits shall be of agencies selected
from a list comprised of the administrative departments listed in section
121.02 of the Revised Code and the
department of education and at least two of the audits shall be of other state
agencies. The offices of the attorney general, auditor of state, governor,
secretary of state, and treasurer of state and agencies of the legislative and
judicial branches shall not be subject to an audit under this
section.

The
auditor shall select each agency to be audited and shall determine whether to
audit the entire agency or a portion of the agency by auditing one or more
programs, offices, boards, councils, or other entities within that agency. The
auditor shall make the selection and determination in consultation with the
governor and the speaker and minority leader of the house of representatives
and president and minority leader of the senate.

An
audit of a portion of an agency shall be considered an audit of one agency. The
authority to audit a portion of an agency in no way limits the auditor's
ability to audit an entire agency if it is in the best interest of the
state.

The
performance audits under this section shall be conducted pursuant to sections
117.01 and
117.13 of the Revised Code. In
conducting a performance audit, the auditor of state shall determine the scope
of the audit, but shall consider, if appropriate, supervisory and subordinate
level operations in the agency.

Every state agency audited pursuant to section
117.46 of the Revised Code shall
accept comments regarding the performance audit from interested parties. The
comment period shall begin on the day following the release date of the audit
and shall conclude at the end of the fourteenth day following the release date.
The agency shall make all comments available to the public on the twenty-first
day following the release date of the audit. The agency shall determine how to
accept comments under this section.

(A)
A state
agency shall implement the recommendations of a performance audit conducted
pursuant to section
117.46 of the Revised Code. If an
agency does not commence implementation of such recommendations within three
months after the end of the comment period for the audit, the agency shall do
both of the following:

(1)
File a
report explaining why the agency has not commenced implementation of the
recommendations with the governor, auditor of state, speaker and minority
leader of the house of representatives, and president and minority leader of
the senate;

(2)
Provide
testimony explaining why the agency has not commenced implementation of the
recommendations to the house of representatives and senate committees dealing
primarily with the programs and activities of the agency.

(B)
Comments
submitted to the agency under section
117.461 of the Revised Code shall
be attached to the report required by division (A)(1) of this
section.

(C)
If an agency
does not fully implement an audit recommendation within one year after the end
of the comment period for the audit, the agency shall file a report with the
governor, auditor, speaker and minority leader of the house of representatives,
and president and minority leader of the senate justifying why the
recommendation has not or will not be implemented.

(A)
The auditor
of state shall annually submit a report in writing to the governor, the speaker
and minority leader of the house of representatives, and the president and
minority leader of the senate describing both of the following:

(1)
Whether
state agencies that received performance audits in the immediately preceding
year implemented the audit recommendations;

There is hereby created in the state treasury the leverage for efficiency,
accountability, and performance fund. The auditor of state shall use the fund
to make loans to state agencies and local public offices that have applied to
and been approved by the auditor of state to receive the loans and to pay the
costs of conducting performance audits incurred by the auditor of state. The
fund shall consist of money appropriated to it plus the repayments of principal
and interest on loans made from the fund. Interest earned on money in the fund
shall be credited to the fund.

(A)
A state
agency or local public office may request from the auditor of state a loan from
the fund created in section
117.47 of the Revised Code to pay
the auditor of state for a performance audit. The amount loaned shall be the
amount charged by the auditor of state for a performance audit under division
(B) of this section.

(B)
The amount
charged for a performance audit of a state agency shall be the same as the
amount charged for an audit under division (A)(2) of section
117.13 of the Revised Code. The
amount charged for a performance audit of a local public office shall be the
same as the amount charged for an audit under division (C)(1) of section
117.13 of the Revised Code.

The
amount charged for a performance audit shall include interest on the amount
loaned, accrued from the date the audit is completed until the date payment is
received by the auditor of state. The interest rate shall be equivalent to the
average of the monthly yields for the state treasury asset reserve fund for the
time period during which the interest is accruing.

(C)
The auditor
of state shall provide each state agency or local public office that receives a
loan under this section with a statement of the amount due from the agency or
office for services performed by the auditor of state, as well as the date on
which payment is due to the auditor of state. A local public office's statement
shall include the percentage of the total cost chargeable to each fund subject
to the performance audit. Payment for a performance audit shall be due one year
after the audit is completed.

(D)
If the local
public office seeking a loan under this section is the office of a county
elected official, the local public office applying for the loan must obtain
prior approval from the board of county commissioners of the county in which
the local public office is located. This approval is required to ensure that
the county office being audited and the board of county commissioners are
notified that the costs of the loan must be repaid.

(E)
All moneys
received for repayment of loans and interest under this section shall be paid
to the credit of the leverage for efficiency, accountability, and performance
fund created in section
117.47 of the Revised
Code.

(A)
If the state
agency has not repaid the auditor of state by the payment deadline established
under section
117.471 of the Revised Code, the
auditor of state shall certify to the director of budget and management the
amount of the loan plus interest due. The director shall withhold from the
state agency the amount certified from funds under the director's control that
belong to or are lawfully payable or due to the state agency and that may be
used to repay the loan. The director shall promptly pay the amount withheld to
the auditor of state.

If
the director determines that no funds payable and due to the state agency are
available or that insufficient amounts of such funds are available, the
director shall withhold and pay to the auditor of state the amounts available
and shall continue to withhold funds and pay the auditor of state until the
full amount due to the auditor of state is paid.

(B)
If a local
public office has not repaid the auditor of state by the payment deadline
established under section
117.471 of the Revised Code, the
auditor of state shall certify to the county auditor the amount of the loan
plus interest due. The county auditor shall withhold from the local public
office the amount certified from funds under the county auditor's control that
belong to or are lawfully payable or due to the local public office and that
may be used to repay the loan. The county auditor shall promptly pay the amount
withheld to the auditor of state.

If
the county auditor determines that no funds payable and due to the local public
office are available or that insufficient amounts of such funds are available,
the county auditor shall withhold and pay to the auditor of state the amounts
available and shall continue to withhold funds and pay the auditor of state
until the full amount due to the auditor of state is paid.

(C)
All moneys
received from the director of budget and management or a county auditor for
repayment of loans and interest under this section shall be paid to the state
treasury to the credit of the leverage for efficiency, accountability, and
performance fund created in section
117.47 of the Revised
Code.

The document which evidences the vesting of any right, title,
or interest in real property, other than public lands, belonging to or used by
the state shall be recorded in the office of the county recorder of the county
in which it is situated. When recorded, such document and related papers shall
be deposited with the auditor of state and kept in his office, except that
evidence of title to highway rights-of-way shall be deposited with the director
of transportation and kept in his office. The auditor of state shall register
the document, except title to highway rights-of-way, in a record system
prepared for that purpose and open for inspection by all persons interested.

The auditor of state shall be the custodian of the field notes,
maps, records, documents, papers, and implements relating to or used in the
survey of the public lands within the state, which were delivered to the
executive of this state by the surveyor of the United States at Detroit, by
order of the government of the United States, the records of field notes and
other records of papers which have been added thereto, the records of deeds and
other records or papers relating to the public lands originally deposited with
the governor or secretary of state, and the records, maps, plats, papers,
documents, and implements relating to the public lands in the Virginia military
district in this state, from the United States land office at Chillicothe.
These records and files shall be subject to inspection, and the auditor of
state, on demand and tender of the proper fees, shall furnish copies of any of
them, certified under his official seal.

The auditor of state shall make the adjustment, as described in
section 2743.49 of the Revised Code, of
the amount that a wrongfully imprisoned individual, in an action brought in the
court of claims pursuant to section
2743.48 of the Revised Code, may
receive for each full year or part of a year of imprisonment and shall perform
all of the functions relating to that adjustment as specified in section
2743.49 of the Revised Code.

When conducting an audit under section
117.11 of the Revised Code of a
city, local, exempted village, or joint vocational school district, or a
community school established under Chapter 3314. of the Revised Code, the
auditor of state shall identify whether the school district or community school
has adopted an anti-harassment policy in accordance with section
3313.666 of the Revised Code. This
determination shall be recorded in the audit report. The auditor of state shall
not prescribe the content or operation of any anti-harassment policy adopted by
a school district or community school.